Finance & Leasing Association3 December 2013
New figures released today by the Finance & Leasing Association (FLA) for October 2013 show a 5% increase in consumer finance new business compared with the same month in 2012. The second charge mortgage market reported its highest level of new agreements in almost four years, up by 25% to 1,391, while the value of new business grew in October by 42%. Over the same period, the average advance increased by 14% to £31,632.
Commenting, Fiona Hoyle, Head of Consumer Finance at the FLA said: “Today’s figures show a continued demand for responsibly-provided credit and maintaining the supply of credit has got to be a priority for the Financial Conduct Authority (FCA) as it finalises its new regulatory regime. “The FLA has called for a sensible and proportionate approach – one which recognises the extremely short timeframe that firms have to implement wide-ranging changes. “With only four months to go before the new regime is introduced, and the final rulebook not due for publication until the end of February, sensible transitional arrangements are going to be essential.”
Table 1: New consumer credit lending
| Oct. 13 |
% change on prev. year |
3 months to Oct. 2013 |
% change on prev. year |
12 months to Oct. 2013 |
% change on prev. year |
|
| Total FLA consumer finance (£m) | 5,403 |
+5 |
16,482 |
+8 |
61,421 |
+5 |
| Data extracts: | ||||||
| Store cards (£m) | 113 |
-7 |
320 |
-5 |
1,381 |
-10 |
| Credit cards & personal loans (£m) | 3,100 |
-1 |
9,130 |
+1 |
35,313 |
-4 |
| Store instalment credit (£m) | 227 |
+7 |
589 |
+7 |
2,390 |
+7 |
| Second mortgages (£m) | 44 |
+42 |
116 |
+29 |
420 |
+31 |
| Car finance (£m) | 1,772 |
+17 |
5,885 |
+24 |
20,191 |
+24 |
ENDS Note to editors:
- The Financial Conduct Authority’s (FCA) consultation on the future shape of consumer credit closes today, 3 December 2013.
- FLA members in the consumer finance sector include banks, credit card providers, store card providers, second-charge mortgage lenders, motor finance providers, personal loan and short-term credit lenders, and instalment credit providers.
- In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £58.8 billion of this was in the form of consumer credit representing about 30% of all unsecured lending in the UK.
